The African Export-Import Bank (Afreximbank) has proposed a financing facility of up to $1 billion to Guyana, in a significant move aimed at empowering local oil-service companies to actively participate in the nation’s burgeoning oil industry.
This development was announced by Professor Benedict Oramah, President of Afreximbank on the opening of the 2025 edition of the Guyana Energy Conference and Supply Chain Expo held between February 18-21, in Georgetown.
The proposed facility is designed to act as a guarantee, enabling local banks to extend financing to Guyanese enterprises eager to engage in the oil and gas supply chain.
At the annual event, Oramah emphasized the capital-intensive nature of the oil sector and the challenges local companies face in securing necessary funding, the very essence of its involvement in the setting up of a continental energy bank for Africa.
“As the President [Dr. Irfaan Ali] mentioned earlier, the banking sector, the industrial sector, the other services all come together to make local content more impactful, and this $1 billion can serve as a guarantee to enable the local banks to participate more effectively,” Professor Oramah stated.
Oramah also highlighted Guyana’s estimated proven crude oil reserves of over 12 billion barrels, underscoring the immense potential for economic transformation. He commended the country’s proactive stance in leveraging these resources for national development.
“My humble advice is that such countries must drill, baby, drill, and if they cannot drill, they should try to sell the oil reserves forward and use the resources to quickly build infrastructure, train their people, and dynamise their economy,” Oramah remarked.
Guyana’s President Irfaan Ali said if his administration green lights the proposal, companies would be able to access the financing directly from Afreximbank or through local commercial banks.
The Guyanese government has been actively seeking international partnerships to develop its oil infrastructure and maximize the benefits of its natural resources.
As Guyana continues its trajectory toward becoming a significant player in the global oil market, initiatives like this Afreximbank’s facility are crucial to enhance the capacity of local businesses and ensure they play a pivotal role in the country’s oil and gas industry.
They not only provide the necessary capital for local enterprises but also ensure that the wealth generated from natural resources contributes directly to the nation’s economic growth and the well-being of its people.
This announcement follows Afreximbank’s recent financial engagements in Guyana and Africa.
In November 2024, the Egypt-based bank extended a $100 million revolving trade finance facility to oil trader JE Energy Limited. This facility was intended to support the purchase and export of Guyanese crude oil, facilitating the nation’s entry into international markets.
Last December, the bank also agreed to co-fund an energy project in Zimbabwe.
Guyana has seen rapid economic growth since 2019 when ExxonMobil began commercial oil production at the prolific Stabroek offshore oil field, being contested by Nicolas Maduro’s Venezuela.
